Price Discrimination Is a Pricing Strategy That

question 51

Multiple Choice

Price discrimination is a pricing strategy that:

• A) Limits sales to a specific demographic.
• B) Charges different prices to different customer segments.
• C) Prices below the prevailing market prices in order to gain market share.
• D) Sets the price at a predetermined level above the per unit cost of production.
• E) None of the above

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Definitions:

Loanable Funds

The money available for borrowing and lending in the financial markets, determined by savings and investments.

Interest Rate

The percentage of a borrowed sum that the lender charges as interest to the borrower, usually specified as an annual percentage of the total loan amount.

Loanable Funds

The money available for borrowing in the financial markets, determined by the savings of individuals and institutions and the willingness to lend.

Interest Rate

The percentage at which interest is charged or paid on a sum of money over a period of time.